The composite ratio was unchanged at 1.56% of all accounts. The bulletin considers delinquencies as a late payment that is 30 days or more overdue.
“We’re in the ninth year of economic expansion when you might expect the pendulum to begin swinging the other way, but delinquencies remain below historical levels as consumers continue to show great command of their finances,” ABA Chief Economist James Chessen said. “The outlook remains very positive, as the strong job market, growing wages, and rising wealth provide the financial wherewithal for consumers to keep current on their financial obligations.”
Three home-related categories covered by the bulletin saw delinquencies decrease. Delinquencies in home equity
loans were at 2.5% of all accounts, a decrease of nine basis points. Home equity line of credit delinquencies fell four basis points to 1.07% of all accounts. Loan delinquencies for property improvements fell three basis points to 0.95% of all accounts. The delinquency rates of the three categories are well below their 15-year averages.
“Home equity-related delinquencies fell across the board as the housing market continued to improve, and they’re now back down to levels last seen in 2008,” Chessen said. “Increased property values and greater home equity have provided a strong incentive for people to remain current on their home loan
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Mortgage delinquency rate edges lower on home price, job growth
Delinquencies in home-related closed-end loans continued to return to normal levels as overall consumer delinquencies remained steady in the second quarter, according to the Consumer Credit Delinquency Bulletin released by the American Bankers Association (ABA).